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Insights · 6 min read

Three Systems of Inheritance Law in Indonesia: Who Is Subject to Which

Indonesia recognises civil inheritance law (BW), Islamic law (KHI) and customary law. Learn which one applies to your family and why it matters.

Pak Hendra (a pseudonym) passed away, leaving a wife, three children, a house in Bandung and a plot of land in his home village in West Sumatra. At the first family meeting, the eldest child proposed an equal division among all the children. His younger sister reminded everyone that the family is Muslim, so the division should follow faraid. An uncle added that the village land is ancestral property of the clan (harta pusaka kaum) and cannot be divided like ordinary property. All three spoke in good faith, and all three were referring to legal systems that genuinely operate in Indonesia. (This illustration is fictional and anonymised.)

Situations like this are more common than people imagine. Indonesia has no single national inheritance law that applies to every citizen. Instead, three systems run side by side: Western civil inheritance law in the Civil Code (KUHPerdata or Burgerlijk Wetboek, BW), Islamic inheritance law as set out in the Compilation of Islamic Law (KHI), and customary inheritance law (hukum waris adat). Understanding which system applies to your family is the first step in orderly estate planning.

Why Indonesia has three systems

This plurality is rooted in history. In the colonial period, the population was divided into several groups, and each was subject to a different civil law. After independence, classification by race was gradually abandoned, but a single codified national inheritance law has never come into being. As a result, the law that governs an estate today is determined mostly by the religion of the deceased, and in certain circumstances by the customary community and the family's own choices.

Civil inheritance law (KUHPerdata/BW)

The Civil Code regulates inheritance in Book Two. Its basic principle is that inheritance occurs only through death, and the heirs by law are blood relatives and the surviving spouse. Heirs are arranged in tiered classes: the first class (children and their descendants, together with the surviving spouse) excludes the next class, and so on.

Some features worth noting:

  • In principle, sons and daughters receive equal shares.
  • Heirs in the direct line have a reserved portion (legitieme portie or bagian mutlak), which cannot be reduced by a will or by gifts made during the deceased's lifetime.
  • Heirs may choose to accept the estate, accept it with the benefit of an inventory, or reject it. This choice matters if the deceased left debts.

In practice, the Civil Code is widely used by non-Muslim families, including families that were historically subject to Western civil law.

Islamic inheritance law (Compilation of Islamic Law)

For a Muslim deceased, the main reference is the KHI, which was disseminated through Presidential Instruction Number 1 of 1991. Book II of the KHI regulates inheritance, including who the heirs are, the size of each fixed share (furudh al-muqaddarah), and the rules on wills and gifts.

Its best-known feature is the ratio of two to one between the shares of sons and daughters, together with heirs who have fixed shares, such as the husband or wife, the father and the mother. The KHI also limits a will to at most one third of the estate unless all heirs agree, and recognises a mandatory bequest (wasiat wajibah) for adopted children and adoptive parents.

Inheritance disputes between Muslims fall within the jurisdiction of the religious court (Pengadilan Agama). This is confirmed in Article 49 of the Religious Courts Law as amended by Law Number 3 of 2006. The 2006 amendment also removed a sentence in the General Elucidation of the old law that had previously allowed the parties to choose which inheritance law to use, known as the right of option (hak opsi).

This question of choice of law is still debated. In November 2025, the Constitutional Court (Mahkamah Konstitusi) decided case Number 205/PUU-XXIII/2025, which reviewed Article 49, and declared the petition inadmissible. This means the provision on the jurisdiction of the religious court remains in force as it is.

Customary inheritance law

Customary law (hukum adat) is not codified and differs from one community to another. Broadly, the study of customary law recognises three kinship patterns that affect inheritance:

  • Patrilineal, tracing descent through the father's line, as in some Batak and Balinese communities.
  • Matrilineal, tracing descent through the mother's line, as in the Minangkabau community, with the concept of high ancestral property (harta pusaka tinggi) that is owned by the clan and in principle is not divided.
  • Parental or bilateral, taking both lines into account, as in many Javanese communities.

Customary law remains relevant mainly for property tied to a community, such as ancestral land or communal customary land (tanah ulayat). The courts have also long developed case law that adapts some customary rules to the principle of equality, for example on the position of daughters and widows. Because customary law is so diverse, applying it in any single case always needs specific study.

Who is subject to which

As a general guide:

  • A Muslim deceased: inheritance is subject to Islamic law, and disputes are heard by the religious court.
  • A non-Muslim deceased: generally uses the Civil Code, with disputes in the district court (Pengadilan Negeri). Some non-Muslim families with strong customary ties still apply customary law.
  • Property tied to custom: may be subject to local customary law, regardless of the law that applies to the rest of the estate.

Within one family, more than one system can overlap. Examples include families with members of different religions, a deceased who changed religion, or families with assets in several customary regions. In such circumstances, the question "which law applies" can become the starting point of a dispute.

Why this matters for your family

The difference between systems is not just a matter of theory. The applicable system determines who the heirs are, how large each share is, how far the deceased may arrange their property through a will or gift, which court has jurisdiction, and which documents are needed to transfer title to assets.

Many family disputes begin with assumptions that were never discussed. One family member assumes an equal division, another assumes faraid, and yet another assumes certain assets are ancestral property. Good estate planning starts by mapping the applicable legal system, then preparing instruments such as a will, a gift or a marriage agreement that are consistent with that system, while still respecting the rights of every heir.

Key points

  • Indonesia recognises three systems of inheritance law: the Civil Code (BW), Islamic law (KHI) and customary law.
  • For a Muslim deceased, inheritance follows Islamic law and disputes fall within the jurisdiction of the religious court; the room for choice of law once mentioned in the General Elucidation of the Religious Courts Law was removed in 2006.
  • The Civil Code is generally used by non-Muslim families and protects heirs in the direct line through the reserved portion.
  • Customary law remains relevant, especially for ancestral property and land tied to a community.
  • The applicable system determines who the heirs are, the size of the shares, the limits on wills and gifts, and the court with jurisdiction.

If your family would like to map which legal system applies before preparing an estate plan, Parampara's consultation team can accompany that first conversation.

This article is general information and not legal advice. How inheritance law applies depends on each family's facts; consult a qualified advocate or notary about your situation.

Legal basis & references

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